(SOUN) SoundHound AI - Overview
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 3.895m USD | Total Return: -9.7% in 12m
Avg Turnover: 240M
Qual. Beats: -1
Rev. Trend: 99.3%
Qual. Beats: 0
Warnings
Interest Coverage Ratio -398.2 is critical
Altman Z'' -10.61 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
SoundHound AI, Inc. develops independent voice artificial intelligence solutions for global markets, including automotive, IoT, and customer service. Its proprietary Houndify platform provides developers with tools such as APIs, diagnostic analytics, and machine learning software like CaiNET and CaiLAN to manage complex conversational queries. The company’s product suite spans generative AI assistants, multimodal customer service interfaces, and specialized voice commerce applications for the restaurant and automotive sectors.
The business operates within the voice-recognition sector, which relies on a platform-as-a-service (PaaS) model to integrate natural language understanding into third-party hardware and software. Unlike closed ecosystems, independent providers like SoundHound allow brands to maintain data ownership and customize wake words across both cloud and edge environments. Investors can evaluate these market dynamics further by reviewing the detailed metrics available on ValueRay.
Headquartered in Santa Clara, California, the company has expanded its reach through strategic software acquisitions and vertical-specific tools like Smart Ordering and Amelia Platform. These technologies facilitate real-time data retrieval for weather, stocks, and flight statuses while supporting enterprise-level AI agents for automated employee and customer assistance.
- Enterprise adoption of conversational AI across automotive and restaurant sectors drives revenue
- Expansion of generative AI product ecosystem increases high-margin software subscription growth
- Strategic partnerships with major chipmakers and cloud providers validate long-term scalability
- High research and development expenditures delay company transition toward sustained profitability
- Competition from big tech platforms threatens market share in voice assistant integration
| Net Income: -169.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 118.0 > 0.02 and ΔFCF/TA 11.8k > 1.0 |
| NWC/Revenue: 117.1% < 20% (prev 229.9%; Δ -112.8% < -1%) |
| CFO/TA -0.16 > 3% & CFO -105.3m > Net Income -169.0m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 3.94 > 1.5 & < 3 |
| Outstanding Shares: last quarter (338.5m) vs 12m ago -18.28% < -2% |
| Gross Margin: 37.96% > 18% (prev 0.44%; Δ 3.75k% > 0.5%) |
| Asset Turnover: 29.86% > 50% (prev 17.40%; Δ 12.46% > 0%) |
| Interest Coverage Ratio: -398.2 > 6 (EBITDA TTM -124.5m / Interest Expense TTM 506k) |
| A: 0.33 (Total Current Assets 288.8m - Total Current Liabilities 73.3m) / Total Assets 645.0m |
| B: -1.52 (Retained Earnings -982.1m / Total Assets 645.0m) |
| C: -0.33 (EBIT TTM -201.5m / Avg Total Assets 616.2m) |
| D: -5.37 (Book Value of Equity -981.9m / Total Liabilities 182.9m) |
| Altman-Z'' = -10.61 = D |
| DSRI: 0.84 (Receivables 62.8m/41.6m, Revenue 184.0m/102.2m) |
| GMI: 1.16 (GM 37.96% / 44.09%) |
| AQI: 1.10 (AQ_t 0.54 / AQ_t-1 0.49) |
| SGI: 1.80 (Revenue 184.0m / 102.2m) |
| TATA: -0.10 (NI -169.0m - CFO -105.3m) / TA 645.0m) |
| Beneish M = -2.48 (Cap -4..+1) = BBB |
As of June 01, 2026, the stock is trading at USD 9.00 with a total of 40,514,596 shares traded.
Over the past week, the price has changed by +8.17%,
over one month by +13.07%,
over three months by +4.41% and
over the past year by -9.73%.
SoundHound AI has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy SOUN.
- StrongBuy: 3
- Buy: 2
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 14 | 55.6% |
P/E Forward = 227.2727
P/S = 21.1697
P/B = 8.4503
Revenue TTM = 184.0m USD
EBIT TTM = -201.5m USD
EBITDA TTM = -124.5m USD
Long Term Debt = 3.19m USD (estimated: total debt 6.23m - short term 3.04m)
Short Term Debt = 3.04m USD (from shortTermDebt, last quarter)
Debt = 6.23m USD (from shortLongTermDebtTotal, last quarter) (leases 6.23m already included)
Net Debt = -209.4m USD (calculated: Debt 6.23m - CCE 215.6m)
Enterprise Value = 3.69b USD (3.89b + Debt 6.23m - CCE 215.6m)
Interest Coverage Ratio = -398.2 (Ebit TTM -201.5m / Interest Expense TTM 506k)
EV/FCF = 0.05x (Enterprise Value 3.69b / FCF TTM 76.1b)
FCF Yield = 2.07k% (FCF TTM 76.1b / Enterprise Value 3.69b)
FCF Margin = 41.4k% (FCF TTM 76.1b / Revenue TTM 184.0m)
Net Margin = -91.84% (Net Income TTM -169.0m / Revenue TTM 184.0m)
Gross Margin = 37.96% ((Revenue TTM 184.0m - Cost of Revenue TTM 114.1m) / Revenue TTM)
Gross Margin QoQ = 20.15% (prev 47.86%)
Tobins Q-Ratio = 5.71 (Enterprise Value 3.69b / Total Assets 645.0m)
Interest Expense / Debt = 8.13% (Interest Expense 506k / Debt 6.23m)
Taxrate = 21.0% (US default 21%)
NOPAT = -159.2m (EBIT -201.5m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 3.94 (Total Current Assets 288.8m / Total Current Liabilities 73.3m)
Debt / Equity = 0.01 (Debt 6.23m / totalStockholderEquity, last quarter 460.7m)
Debt / EBITDA = 1.68 (negative EBITDA) (Net Debt -209.4m / EBITDA -124.5m)
Debt / FCF = -0.00 (Net Debt -209.4m / FCF TTM 76.1b)
Total Stockholder Equity = 420.9m (last 4 quarters mean from totalStockholderEquity)
RoA = -27.42% (Net Income -169.0m / Total Assets 645.0m)
RoE = -12.04% (Net Income TTM -169.0m / Total Stockholder Equity 1.40b)
RoCE = -14.33% (EBIT -201.5m / Capital Employed (Equity 1.40b + L.T.Debt 3.19m))
RoIC = -44.34% (negative operating profit) (NOPAT -159.2m / Invested Capital 359.1m)
WACC = 15.41% (E(3.89b)/V(3.90b) * Re(15.42%) + D(6.23m)/V(3.90b) * Rd(8.13%) * (1-Tc(0.21)))
Discount Rate = 15.42% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 64.44 | Cagr: 13.52%
[DCF] Terminal Value 54.80% ; FCFF base≈76.1b ; Y1≈76.4b ; Y5≈81.0b
[DCF] Fair Price = 1.43k (EV 573b - Net Debt -209.4m = Equity 574b / Shares 400.2m; r=15.41% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -1.20 | # QB: -1
Revenue Correlation: 99.34 | Revenue CAGR: 91.12% | SUE: 0.48 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.04 | Chg30d=N/A | Revisions=N/A | Analysts=4
EPS next Quarter (2026-09-30): EPS=-0.03 | Chg30d=N/A | Revisions=N/A | Analysts=4
EPS current Year (2026-12-31): EPS=-0.14 | Chg30d=-161.90% | Revisions=-20% | GrowthEPS=-5.8% | GrowthRev=+37.4%
EPS next Year (2027-12-31): EPS=-0.12 | Chg30d=N/A | Revisions=-20% | GrowthEPS=+12.7% | GrowthRev=+17.8%
[Analyst] Revisions Ratio: -20%